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How to Start a Business without Money

Several decades ago, before I got interested in starting businesses, I met a friend who went from being penniless to becoming quite wealthy in a breathtakingly short amount of time. I asked him what the secret of getting rich was.

He said that you should find something that interests you and become an expert. For some reason, he became interested in turquoise and went from knowing nothing to becoming quite knowledgeable about the gem, the various sources, the market, and the players. One thing led to another, opportunities presented themselves and, presto change-o, my friend was showered with dough.

When I started my first business, which was an ice cream company, I had no money, I had no business experience, and I had absolutely no idea how to make ice cream. Five years later, my ice cream was judged to be the best in America by People Magazine. (See April and May 2005 archives of this blog for the whole delicious story.)

What drove the growth of my business was the growth of my knowledge of ice cream. And what drove the growth of my knowledge of ice cream was my love for the stuff.

When you start a business, what must lead the way should be your own interest in or love for whatever it is you want to do. Loving what you do miraculously attracts all the necessary resources, people and opportunities. You definitely don’t need money to start. Bootstrapping will stimulate your creativity and that is worth much more than money anyway.

Besides, money is overrated. I have found through bitter experience that there is always baggage that comes with investors’ money. You take their money and you get their karma too. What may seem like easy money is frequently filled with major headaches and not worth it in the long run. I vastly prefer the freedom and the control that comes with bootstrapping.

But I am also a practical man who like fast-growing businesses. Therefore I have had to take on financial partners of various stripes. I have learned to be VERY fussy about who I partner with. But that is a whole other story.

One more thing: Your passion doesn’t have to be about any particular product or service. For me, my passion is the process – building teams, collaborating with others, wrestling with creative challenges, supplying customers with value, entertaining paradigm-shifting ideas, dreaming of the potential for fast growth, and being socially responsible to all the stakeholders, not to mention Mother Earth. I am passionate about those things, so if all those elements are present, then it doesn’t make a lick of difference if the end-product is ice cream or telecommunications (my second biz and I knew absolutely nothing about telecom either) or whatever.

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Theres a great post over The Lazy Way to Success about how to start a business without money. Fred Gratzon shows you that all you need is not money, but is your knowledge and passion on the business. He have bootstrapped two businesses from no ... [Read More]

Tracked on November 04, 2005 at 09:45 AM

Comments

Great article. I am very impressed with your knowldge and common sense (which is not very common by the way).
I think there should be more people like yourself that have the spirit of business.
I absolutly agree. Money is over rated. So are investors.
http://consultancyissues.blogspot.com/

I love this post. I spend a lot of time checking out the world of business and enjoy entreprenuership with a passion. I have started a few small ventures on my own and love the idea of bootstrapping. The problem is that you don't reveal any great TRUTHS in the blog that you posted. Maybe you were trying to relay the concept of getting out there and doing it, but as far as relaying the concept of not needing money for a startup there is not one ounce of good information to lead someone in the right direction. If you are going to make a post with that particular title, give it some depth and include something that will prove your original statement.

Next week, if I remember and get around to it, I'll reveal another GREAT TRUTH about this topic. But everyone is different and every circumstance is different so, in actuality, just going out there and doing what you love is THE greatest of truths. Mother Nature then takes care of what you need to progress -- be it money, people, ideas, opportunities, and/or knowledge.

I'm trying building a business doing what I love. Still figuring out how it works, though. My first attempt didn't work out. Probably because of a wrong partner and because I wanted to make things too perfect and missed the big picture.

After that I was reading many many business books. The result: I lost my passion because I was more concerned about having a proper business idea instead of doing what I love.

Now I'm back at square one. I realize that passion is the most important driving factor, everything else has to come later (at least for me. I'm not that kind of entrepreneur who can start a business just because the idea is sound. I need a deeper meaning).

I love games. Of any kind. And I believe games can do wonderful things. So this is my motivation and what I want to give.

The next step is the problem. Also, when should I follow my intuition and when my logical mind?

I worked for Fred at his telecommunications company and have been quietly following his blogs. This one especially grabbed me because it speaks to his passion and how his passion lies at the basis of all that he does. But his passion is also molded by his intelligence and his openess. Fred has very deeply and strongly held beliefs that shape his actions but he is also totally open to suggestions and guidance in those areas of his business that are outside of his expertise. He knows his strengths and he acknowledges his weaknesses. These qualities plus his astounding tenaciousness - bordering on obstinacy - have been central in his many business successes, IMHO. When Fred believes passionately in an idea, he never gives up ... even when most business books and MBA's would advise folding his hand. This has allowed Fred to pull some spectacular successes out of impossible odds. Anyway, these are just my observations having worked for Fred. Enjoy.

Fred was my best boss of all time. I also had the pleasure of working for Fred, and Michael. He is a model of an enlightened business leader, and showed he really cared for his employees. He offered more than just good pay and interesting work. His company offered discounts on state of the art health care procedures and products, such as group stress management meditation sessions and herbal anti-oxidants. Company meetings were entertaining as well as informative because of Fred's quick wit and sense of humor. We wanted to work harder for him, although he wanted us to stay rested and alert. If only the Board listened to him more. Fred created a company that improved many lives, and sets an example for ideal employee development.

I was very interested to stumble on your website and related sites concerning "How to find your Calling". But what I find rather frustrating and to some extent puzzling is why so many of these type of sites and ideas only seem to come out of America. I, as you can see from my email address live and work in the Uk where there seems a limited response to such areas. Now if you can prove me wrong then I would be very interested in finding them. But more importantly, maybe you could tell me why this should apply.

I am starting a business and have choosen not to take out loans or a "partner' I want this to be me and about what I can do ! cause I know I can. I could do it faster with a loan or whatever,but than it would'nt be mine!! this is just the added spunk I need to continue !!

I just want a job working out of my home, I have no car for sales work, know bookkeeping, customer service and lots of office duties, even setting-up-manual-file systems, very organized with organizing office and home experience, once had a cleaning business, and 63 look 50 ;whatever, that has to do with anything. I have exceptional gift to gab, communication both written and verbal skill/talent---I type about 48 wpm---I want to home-base sell or bookkeeping or any work I am qualified to do---not an opportunity where I shell money out---I want to just have a home-based job and get a regular weekly pay-check. ANY IDEAS----AS A LAST RESORT I WANT TO FIND A BUSINESS PARTNER FOR SHARING MARKETING IDEAS, MOTIVATION AND HELPS SELL IT---MOSTLY I WANT A J-O-B---CAN YOU HELP, DESPARATE FOR $$$$$$$---THANK-YOU FOR ALL YOU CAN DO

I suggest you suscribing for free to Joe Vitale & Joel Christopher recorded teleseminar series: "How To Make Money Online When You`re New, Don`t Have a Product, Or A List, or Any Money Even When You're Just Starting From Scratch"
There you'll find a detailed 30 days plan to earn money.
I include the plan URL (you'll need Real Player, that you can get for free):
www.successaccess.com/audio/Joe-Joel2e.ram
from minute 15 to the end.
The end of the plan is at:
www.successaccess.com/audio/Joe-Joel2f.ram

If after listening this plan you want to get for free the whole series and many other free resources, let me know and I'll help you to subscribe.

I am looking for gift money or angel investors or investor to invest in my used furniture stor in battle creek michgian. their a big dmand in this city for one. I have completed college. My husband passsed away three years ago and I would like to start my own business. I have researched it and their is a big demand in this city

Agian, this article does NOT tell you how to start a business without money. It tells you that if you have the passion for something and you set your mind to it you could accomplish your goal. But either you need money or a nice business plan to get a loan from a bank. Unless theres another way thats clearly left out of the article. Either way you have to work hard in the end to accomplish your goal.

The content in the article is good its the title thats misleading.

This is nothing new. If you want to be successful start of by reading "The Magic of Thinking Big". The reviews on amazon alone will tell you the value of the book.

I need to work. I have a disabled daughter and can not work on the books. I can not do this by myself with only SSI and child support. I need to work at home with no start up fees. Anything you say I would live to hear. If you can help please e-mail
me at fran@bontheweb.net.

It has been a dream of mine to open a horse stable and rehabitation center. I've been around horses (racehorses) for thirty years and worked with a veterinarian for about five years. There are many ways to make money with a stable you have stall rent,hay sales,small tack shop,swimming pool for horses, aqua tread,turnout pins and many other ways. All I need is cash to get this started. We are very short on quality stables in this area. I could fill a 50 stall barn before it opened with a good chance to fill a 100 stalls at $75.00 per stall horse owner does everything and if you have full care horses that $275.00 to $500.00 each month. A person can make a fair living doing this.

I don't know how to start my own business for a fitness center. I am one of the most extreme personal trainers in Atlanta, Ga. And everyone has a big gym in my city except for me. I don't have a training facility for my loyal 50 clients. I know I can gross over $150,000 a year, but I dont have the help right now. I am dead broke and dont have a dime to my name. I have just lost everything from a divorce. I do not want to lose this what I have left in this dream I have....Please help me or show me the way to do this....Or contact an investor and we can meet and I can show him/her my plans on becoming the big break of my city. e-mail me at natejacks@atlantarugby.com

I am just another person to look at starting a business, but don't have the capital! It's sad really, because I have some great ideas, this place I live in has so many potentials and is booming...Our walmart makes mega money, its a new store, but business is non stop here because, its just booming..If You have any suggestions for me..leave me an email at Lilafields@hotmail.com Thanks

I have had an interest, which has become my passion for the last 15 years. I have studied it, tested it inside, outside and every other way. I can honestly say that I have become an expert in this.
I really and truly love it!!

OK, most people are not going to like this, but here goes :

Roulette!!
It has been said that Roulette cannot be beaten. (However, I remember reading about one man in the 1960's, who did the same as I've been doing - studying it relentlessly until he "cracked" it. He became a multi-millionaire off casinos. He was finally banned from all casinos in Monte Carlo and took his secret to the grave with him).

Well, I believe I have finally found the way to beat Roulette in online casinos.
I have tried it in 8 different casinos, multiple times each day. (Play for "fun money"). I've actually tried it in 100's of online casinos, but I've found the very best 8.
Result? 98% win rate!!
The very occasional loss stops me at my stop-loss, which I make up within 36 hours.

OK, so why am I not doing this with real money?
Quite simply, because I don't have the funds, being US Dollars. I need at least $1000 to start.
In my country, that is equal to 5 months salary in the area we live!!

So, I have the knowledge, the plan, the discipline, the passion and "the secret" .... how do I go about getting the funds required?

Any suggestions?

If anyone reading this has any suggestions, please feel free to contact me
casamer@imaginet.co.za

First off, I think you are majorly kidding yourself to believe that you have a fool-proof system that beats the house in roulette. It is mathematically impossible. Winning is based on chance and the odds are stacked against you. The zero and double zero see to that. Casinos -- real and virtual -- get rich off of people like you. Hence my suggestion that you get a life.

Second, I think gambling is a waste of money, time, and life. No good comes from gambling. If I were you, I'd avoid the temptation to gamble and find something productive, life-affirming, and evolutionary to do instead.

Third, bootstraps are those little cloth loops inside a boot that you grab onto to pull your boot on. Bootstrapping is an American entrepreneurial expression meaning to pull yourself up using your own wits, creativity, energy, etc. and not relying on others.

Thanks for your comments. I appreciate what you are saying and yes, I have seen mostly losers over 15 years playing in casinos, both on and off line.
I have personally witnessed millions being lost by undisciplined gamblers - very sad.

However, just to let you know, I was a professional gambler (playing Roulette only), for over a year when I was divorced. It was my ONLY source of income.
I supported myself and my 4 daughters that way for over a year, and we lived well. (I even bought a new car - casino winnings paid for it.)
Only 1 visit per week and 10 minutes later I had my weekly pay!!

When I re-married I stopped visiting casinos, as my husband supported me and the girls, but I continued to develop my methods further, as my hobby.

Roulette is a game of numbers. There are, (as in everything in life), patterns and certain influences.
It's taken me 15 years of analysis and testing to identify those patterns and influences.
I also use "mind-power".

So, yes, I CAN beat the casinos playing roulette. I prove it everyday, several times a day.

Then write a book about it, print it or better yet make an ebook and sell it..

If you are really, really this is FOOLproof sistem then you will make more money selling your book then you will make money in your entire life.

and BTW put in your resume for the book that you made several millions on this sistem, and also rent Porche, Masseratti or ... better yet an Rolls Royce so you can show on the presentation of the book how much money you made (or just simply ask a favor from local LearJet manager to take few shots with you inside and outside the plane, oh... and don't forget to test-dirve that sleak Maybach :))))))))))))

I don't want to be part of your party pooping that is going on, however, if you indeed came up with a way to beat the roulette machine you should take Mayo up on his challenge, write a book and sell it then you'll have your thousand dollars with what 100 copies being sold at 10 dollars each for a paperback. There's an old saying either put up or shut up.
Thanks,
Oh by the way I came here because I'm starting, notice I didn't say gonna start or thought about starting a business, that's correct, I'm starting my business and I'm broke right now. I will post back in a couple months and tell you if I'm living my dream or if I'm still under the bridge.
Dman25002002-remember that name

Hi, right now I work but I am interested in opening a small business. I was thinking on a bread or donut store I mean make fresh bread and donuts, but the problem is I don't know how to make bread or donuts,and I don't know how to start. I also like to prepared flower arrangements. If any one has information on how can i start please write

Hi Everyone....I have Been Thinking and Searching Every angle to start a Buisness Without Money....Not to Put a Damper on Your Hopes....But as I say this I am Putting a damper on My Own Hopes....I would Like to start a small Buisness in this small town of mine..Lindale,Texas It is starting to Grow and develop....So now is the Perfect Time...But all I know and have seen is...Without Money You cannot do this....Grants online are all bull and Yes I am Sad that after reading all of this here...that there is no such thing as Starting a Biz without Money....Either a Bank Helps or a Friend Loans You the Money...that is the only way...And Dreaming about it is Just a waste of time and Energy....Yes I sound Like a Party Pooper...I should have started My planning Years Back I am 50 a female without any real Great skills...Love to sing but who cares....Yes You can tell I am bummed out tonight...Still Optimistic of Something Great Happening but We are Not going to start a biz without Money...Reality can be Brutal....But I do wish That You all Find Your way to the Path of Your choise...Life is Good But Yes sure would Be Better With A Great Big Opportunitie Handed Directly to Me...and to You all...I know Your Pain and I know Your Hopes...I am Right there With You...I Pray for all of Our Dreams to Become a Reality...Somehow....We would all Like a More Fullfilled Life* Lisa

P.S. The One about Knowing all about Beating the odds at Roulette....I agree with the answer of Yes Writing a book or E-book is a Fantastic solution To your Money Problems...E-book Might Be the Cheapest Route to go for starters....Get some Money together from it then Check into a Publishing company and go from there...Lisa

Great post!
I completely agree with 'bootstrapping' and just can't figure out what all these people are having such a hard time with. It means: get off your duff and get doing something, the opportunities will appear and you better grab them because it's all up to you baby so stop whining and get on with it allready! Don't have any money at all? There are millions of people out there like me that get jobs, save, then use their savings to do what they want. It's not instant, but it is proven to work. And at least you are showing initiative, so when you do find an investor, you can convince them that you mean business!
Good luck, everyone, and remember, the Lord helps those who help themselves! (you don't have to be a Christian to appreciate the classics)

I want to start a baking business from home
donot have the money to get it on line,but i
have giving away enough cake and pie,to no
iam a good baker. Just need some ideas on getting my product out there

Great post. I also love the process of building something from nothing, and providing an excellent service to our customers. When I get positive testimonials, or positive feedback I do cartwheels across the floor.

sir,
i am a b-tech student and read your article ,i have a great passion for doing business but i don't have a money . After completing my graduation i had decided to start up my own company .Please advise how to start with it.

I think your article was most impressive, however I want to start a business in selling and repairing computers. I even have had the thought of wanting to start my own brand of computers. I love computers and are very enthusiastic about them, actually i love them. There's one problem, I don't have any money to turn my ideas into money can you help me or advise me in the right direction. Thank you

My business is inconsistent. When it rains it pours; and then I'll have months of dry dry dry. I recently pulled back to really think through what is missing so I can move up to the next level.

I am very passionate about what I do. It is the best 'job' I've ever had. Very life-giving. My weakness is in marketing. I am not skilled in this area. And I prefer word of mouth (I like the relational aspect). However, after reading your post it dawned on me...what if I become passionate about marketing and learn how to be an expert at that...?! It's the only area of my business that I don't have passion for. This is fantastic. Something new to explore and grow in.

i am an ambitious young man who is starting my own silk screen clothing company through the internet, i have been working on this buisness plan through the job centers new deal program and have now come to a stand still as i am in need of funding to get materials, the trademarketing rights to my logo and other financial costs any help with this would greatly be appreciated thanks.

hi my name is samir khan and im really confused about my future can you please help me i have this 1 floor in a plaza and it at good location but the only problem is that i dont have any money and there is no body to help me out i want to do some thing of my own and i love house music may be you can help me out i live in pakistan

I want to start a business of my own I am 25 married with three kids I have ideas but i just dont know where to start.I love workin and i love a challenge i just want to do it my own way and not anybodys time clock. I need the time to manage my family life and make money at the same time.. I need money guidance and success in my future...PLEASE HELP!!!!!!!!!!

I really spend so many time looking for a job that I can do at home, not to be rich but to spend time with my children and aford my bills, live decent, without having to live my kids alone for a hole day.

Iam in desperate need in Starting a Painting business I dont have any money whatsoever and i am on he verge of losing my house, as a matter of fact I must move out of my house on Febuary 2008. PLEASE HELP ME TO BECOME A SUCCESS

i've read your article and think that it's but wouldn't it be nice for people to work with you and take there first payment out of there checks instead of them sending money to yoif you need to help people that dont have no money to invest why do they have to send what they dont have.

hey ORANGE HERBERT am areej
am a young DJ with good expirience
and my boyfriend is a really good one
too but we can't get any money we have
nothing actually each one is living by his
own salary and we r saving nothing...
i really need u to help me start something
in the business track and get a fast profit
and save some money within 3 years...

hope u can help me and if u can't please lead
me to someone who knows how...

Hello,
I know you heard all the stores, but I am writing out in pure desperation. I have a great idea, with no money. That is a very terrible position to be in, I no longer wish to be in this position. I am very aggressive in business and very knowledgeable about the idea I have. This is not a "scam" this is for real. I have two kids I have to take care of. I do not want to fail in doing that. Any investor that is interested, I will split profit with them and let them control the paper work, and I promise someday Banks will come to me that I will no longer need. This is truly desire and passion and my fire will not burn out. Any questions, contact me @ kohut1968@aol.com, SERIOUS investors only, that want to make money and not get scammed.
Whoever dares to want to make money, I promise I will make money, that's that. I am a true hard-working person that will get rewarded and reward whoever helps me.

Hello!! I want to start a business at home , so I can have more free time to build a community here & grow "organic" vegetables & herbs & fruit!(We are vegans!) To market healthy food also....& have workshops & seminars & programs etc. to help to improve the "world" where we all can work together & build up the changes thats needed ,how things are now.... & work on the future! Birdie

Just like many of the comments I have just read,I want to start a business.I have been a registered nurse for 9 years and am bored with it,I believe I have alot of potential and want to journey out into something new.I have pretty good credit I am willing to take out a loan,does anyone know about the details and if this is a hard process.
By the way if you have no money and no means to get any,then try to get that before you think about starting a business,I dont believe anyone is willing to fork over all the investment for you to reak profit in the future for your "great" ideas---we all have those.Dont mean to be mean--just honest.

okay thats all well for some but i have lots of passion for my yet undeveloped business idea but with no money for materials and supplies that all its ever gonna be another of my undeveloped ideas
thanks for the overwhelming pour of enthusiasium every site states the same i wish there was institute that just gave money to deserving individual and iam native american living on a federally funded reservation with still no grants or anyother aspects

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I have this really cool idea, that no one has come up with as of this date. I am a single mom looking to start my own business. I have no cash of course so it is seemingly impossible for me to " start" it. If anyone has any suggestions, i am completely open. I have all the ambition in the world and i am getting frustrated.

I have this really cool idea, that no one has come up with as of this date. I am a single mom looking to start my own business. I have no cash of course so it is seemingly impossible for me to " start" it. If anyone has any suggestions, i am completely open. I have all the ambition in the world and i am getting frustrated.

I really have had no income since April 2008 and my car's engine blew in June that was towed. Feel free to email me at Flinshot@aol.com I am a creative person who uses both sides of my brain no network phone line for internet. No one to borrow from. So, I really cannot afford even one dime. I will be a grandmother soon and really need to be a source of emergency etc... I do believe in miracles and hard work. A to Z of service work including driving a semi-truck I have done it. But; I am tired of not using my brain for gain.

Wow!! This blog and the topic contained in this blog is awesome. I stayed more than 2 hours and took notes which contains more information about starting a business without money. Thanks for sharing this kind of topic.
=========
george
Home Based Business

Great posting but there is a lack of information maybe you dont want your secret to be out there. I have a great passion and love for the energy industry, electrical energy to be specific. I am busy experimenting with dynamos and motors to generate electricity without effecting the natural environment. My aim is to start a Energy company that will supply electrical energy on a domestic level and if it is a success I will take it further on industrial level